How PRG Rescued a Struggling Small Trucking Business
Background
A small family-owned trucking business faced a series of devastating personal and financial challenges before seeking assistance from Pacific Resources Group (PRG). The owner of the trucking business, a resilient woman determined to avoid the stigma of bankruptcy, was left in a precarious situation following the death of her husband. He passed away after battling stage 4 kidney failure and lung cancer, leaving behind personal guarantees and substantial debts. With the business closed and a debt of $52,887 looming after a voluntary repossession of equipment, she turned to PRG for help in winding down the legacy debts.
The Challenge
The specific challenge involved a lawsuit filed by a leading national equipment finance company against the trucking business. The finance company sought damages for breach of contract and breach of guaranty, amounting to $52,887, plus interest, attorneys’ fees, and costs. The pressing need was to negotiate a settlement that would reduce the financial burden on the trucking business and avoid the cost and uncertainty of prolonged litigation.
PRG's Intervention
The client engaged PRG for their expertise in settlement negotiation. PRG’s Client Service Associate, Lindsey Aguilar, led the efforts to negotiate a favorable settlement. PRG approached the situation with a strategy centered on empathy, expertise, and rigorous negotiation.
Assessment and Strategy Development
PRG conducted a thorough assessment of the trucking business’s financial situation and the details of the underlying debt. Understanding the personal and financial hardships faced by the client, PRG crafted a negotiation strategy that aimed to reduce the debt substantially and secure favorable payment terms.
Negotiation Process
Ms. Aguilar initiated extensive negotiations directly with the equipment finance company’s attorneys. The goal was to secure a settlement that would be manageable for the trucking business while also being acceptable to the finance company. Through persistent dialogue and presenting a clear picture of the trucking business’s financial constraints, PRG aimed to find common ground.
Settlement Agreement
After rigorous negotiations, PRG successfully negotiated a settlement where the finance company agreed to accept a reduced sum of $33,000. This amount was to be paid over 66 consecutive monthly payments of only $500, starting from the execution of the agreement. The interest-free payment plan structured over 5+ years provided the client with an extremely feasible way to manage the debt without jeopardizing her family’s financial stability. Other key components to the settlement were a release of all parties from further liability, a covenant not to execute on or record the stipulated judgment unless the trucking business defaulted on the payments, and a reasonable notice and cure period. PRG’s outside attorney network was made available to review and advise on the settlement agreement ensuring adherence to the client’s best interest.
Outcome and Impact
The settlement was a substantial victory for the small family-owned trucking business. It allowed the company to avoid the uncertainty and expenses associated with litigation and to resolve the matter under favorable conditions. The, more than, $19,000 in savings from principal plus even more savings from past interest and legal fees plus the negotiation of an interest-free repayment plan spanning 5+ years provided a more than clear path for the client to manage and eventually eliminate the debt.
Conclusion
This case exemplifies PRG’s commitment to helping clients navigate financial crises with strategic and empathetic solutions. By focusing on tailored strategies and rigorous negotiation, PRG was able to transform the trucking business’s daunting financial challenge into a manageable resolution. The success in this case underscores PRG’s role as a trusted ally for small businesses facing financial difficulties, reaffirming their mission to provide clear, effective financial solutions and support.
PRG has over 15 years of experience in debt negotiations and settlements. However, please note that results may vary. Each case is unique and influenced by multiple factors including, but not limited to, the amount and type of debt, the debtor’s financial situation, and the creditor’s willingness to negotiate. Therefore, while we strive to provide the best possible outcomes, we cannot guarantee specific results.
About Pacific Resources Group (PRG)
Pacific Resources Group is a leading provider of settlement negotiation services. They are committed to helping businesses resolve problematic debts quickly and efficiently. With a team of experienced negotiators, PRG has a proven track record of success in transforming financial challenges into opportunities for growth.
Our Promise
At PRG, our mission is to serve as a trusted ally for small busienss owners, guiding them through the complexities of strategic debt negotiations and financial management. Through clear communication, practical solutions, and ethical practices, we empower entrepreneurs to make smarter decisions, maintain consistent profitability, and achieve lasting success.
Our vision is to revolutionize financial consulting for small business, making the sophisticated realms of corporate finance, operations, and complex negotiations accessible, understandable, and no longer a bottleneck for progress.
- Simplicity in Strategy
- Aligning Incentives
- Integrity and Transparency
- Empowerment through Education
- Customized, Client-centric Solutions
- Humble Expertise
- Commitment to the ‘Little Guy’
- Innovation and Adaptability
At Pacific Resources Group, we go beyond financial consultancy. We aim to empower our small business clients to achieve long-term success with the same passion that ignites us.
With over 15 years of experience, Pacific Resources Group transforms financial challenges into opportunities. Guided by integrity and expertise, we are committed to your business’s growth and success. Partner with us for a journey towards financial excellence.